Warrant: A type of security that entitles the holder to buy a proportionate amount of common stock or preferred stock at a specified price for a period of years. Warrants are usually issued together with a loan, a bond or preferred stock --and act as sweeteners, to enhance the marketability of the accompanying securities. They are also known as stock-purchase warrants and subscription warrants.

Wash-Out Round: A financing round whereby previous investors, the founders, and management suffer significant dilution. Usually as a result of a washout round, the new investor gains majority ownership and control of the company. Also known as burn-out or cram-down rounds.

Weighted Average Antidilution: The investor's conversion price is reduced, and thus the number of common shares received on conversion increased, in the case of a down round; it takes into account both: (a) the reduced price and, (b) how many shares (or rights) are issued in the dilutive financing. See Broad-Based Ratchet and Narrow-Based Ratchet definitions.

Williams Act of 1968: An amendment of the Securities and Exchange Act of 1934 that regulates tender offers and other takeover related actions such as larger share purchases.

Wilshire 5000 Index - The Wilshire 5000 is an unmanaged, market capitalization-weighted index of approximately 7,000 U.S. equity securities.

Within The Hedge: A phrase describing an equity hedge portfolio in which long positions are matched by equal dollar amounts of short positions.

Workout: A negotiated agreement between the debtors and its creditors outside the bankruptcy process.

WRAP - An investor can "wrap" a hedge fund investment with a private placement variable life insurance or annuity contract, eliminating the tax burden that frequently accompanies this style of investing.

Write-off: The act of changing the value of an asset to an expense or a loss. A write-off is used to reduce or eliminate the value an asset and reduce profits.

Write-up/Write-down: An upward or downward adjustment of the value of an asset for accounting and reporting purposes. These adjustments are estimates and tend to be subjective; although they are usually based on events affecting the investee company or its securities beneficially or detrimentally.

Year End VAMI (Value Added Monthly Index) - The value that $1000 invested at inception would be worth at the end of the calendar period.

Yield (Internal Rate of Return): The percentage rate of return paid on an investment in the form of interest or dividends.